Macro Clouds, Micro Foundations, Realities for Decision-Makers
“An overconfident government throws itself into a dysfunctional culture it doesn’t really understand. The result is quagmire. The costs escalate. There is no exit strategy.” 1 In the rush to solve the current economic problems policymakers base their projections of success on high-level multipliers and big-picture estimates. Often missed, however, are the on-the-ground microeconomic implications of policy proposals, a failure which has led to disappointment in the past. What can
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